Global FX & Commodities Outlook: USD, EUR, GBP, JPY, AUD and Oil — Key Market Drivers
United States. The US dollar is strengthening against the euro, weakening versus the pound, and showing mixed dynamics in the pair with the yen.
United States. The US dollar is strengthening against the euro, weakening versus the pound, and showing mixed dynamics in the pair with the yen.
This week, the EUR/USD pair reached four-week highs near 1.1770, but is currently correcting lower amid the de-escalation of the trade conflict between the United States and the European Union.
European equity indices continue their corrective move, reflecting market reaction to a potential increase in US import tariffs on EU goods to 10.0% from February 1. Against this backdrop, CAC 40 is trading near 8065.0.
The EUR/USD pair is trading in a corrective trend near the 1.1715 level, supported by stable macroeconomic data from the European Union.
EUR/USD. The European currency is losing ground against the US dollar, correcting after the strong bullish impulse formed at the beginning of the current week. The pair is testing the 1.1715 level for a downside breakout, remaining close to the local highs recorded on December 30. Demand for the single currency continues to increase amid further deterioration in relations between the United States and European countries.
During the Asian session, USD/CAD is trading around 1.3848. The Canadian dollar remains broadly neutral amid a lack of positive shifts in macroeconomic data at the start of the year.
During the morning session, GBP/USD is correcting near 1.3441. The pound retains upside potential amid steady housing-market data from Rightmove Group Ltd., pointing to a recovery in the sector.
The European currency is gaining against the US dollar in the EUR/USD pair, trading near 1.1667 and extending the strong bullish impulse from the previous session. The dollar remains under pressure amid a lack of new price drivers, while investors are seeking alternatives to the US currency against the backdrop of renewed risks of “tariff wars” between the US and the EU.
EUR/USD. The European currency is gaining ground against the US dollar, trading near 1.1667 and extending the strong bullish momentum from the previous session. The dollar remains under pressure amid a lack of new directional drivers, while investors are seeking alternatives to the US currency due to the risk of renewed “tariff wars” between the US and the EU.
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No matter the lane—FX, stocks, or commodities—the job is to marry the story with the tape. In FX, watch the macro prints and central-bank moves, especially rates. In equities, it’s earnings, cash flow, competitive edge, and the broader rate/growth backdrop. For commodities, price is shaped by supply and demand, inventories, weather, and geopolitics. Then use the charts—trend and momentum, support/resistance, volume, and familiar patterns—to pick entries and exits and keep risk on a leash.